Some answers:
1. You can't really move the camera, or more should I say it's impractical. Instead, you got to use scrolling techniques. I don't have it up now (and possibly for a while), but I want to write a tutorial on 2D side scrolling, since It kind of is a common request.
2. Backgrounds really shouldn't have collisions detected. backgrounds are just there for ascetics (to look good essentially). Just remove the code for collision detection with the background.
3. I think the "dbBlurSprite()" command is what you are supposed to use, but I can't really access the documentation right now. If you don't know where it is, you can find it in:
Start > My Programs > The Game Creators > Dark GDK > Documentation
http://ref.darkgdk.us/ <- Online DarkGDK Refernece. More content coming soon.